Breaking News
LAST CHANCE for Cyber Monday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

S&P 500 Closes Below Record High as Tech Crackles Under Snap Pressure

Stock MarketsOct 22, 2021 21:14
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Yasin Ebrahim

Investing.com – The S&P 500 retreated from all-time highs to close lower Friday, as a slump in Snap triggered a sea of red in tech just as Federal Reserve Chairman Jerome Powell attempted to quell concerns about the prospect of earlier rate hikes.

The S&P 500 closed down 0.1% at 4,544.98 just shy of its closing record of 4,549.78, the Dow Jones Industrial Average added 0.2%, or 74 points, the Nasdaq Composite slipped 0.82%.

"It is time to taper, not to raise rates," Powell said. The remarks arrived against the backdrop of growing concerns the Fed may be forced to hike rates sooner rather than later to curb inflation pressures.

The Fed chief continued to suggest the pace of inflation remains transitory, though said the central bank would use its tools to “guide inflation back down to 2% over time.”

“At the same time, we think we can be patient and allow the recovery to take place and allow the labor market to heal,” he added.

Tech, which has played a big role in the recent market melt-up, was under pressure after Snap’s warning on slowing revenue growth following Apple’s privacy-related changes to its mobile operating system, iOS.

Apple (NASDAQ:AAPL) announced earlier this year that, as part of the iOS 14 update, it will give users the option to block apps from accessing the IDFA, or tracking advertiser on their iPhones.

Snap (NYSE:SNAP) also blamed supply chain headwinds as another factor for the below-consensus 4Q21 guidance.

But both supply issues and events “should ultimately prove transitory as advertisers progressively adopt new tools to more accurately measure events in a post-IDFA world and also as issues such as port congestion and labor shortages revert back to pre-pandemic levels,” Credit Suisse (SIX:CSGN) CSGN said in a note.

Facebook (NASDAQ:FB), Twitter (NYSE:TWTR), and Pinterest (NYSE:PINS) were down more than 4%.

Financials, meanwhile, were pushed higher by better-than-expected quarterly results from regional banking stocks and American Express .

SVB Financial Group (NASDAQ:SIVB) raised its full year 2021 growth outlook following third-quarter results that beat on both top and bottom lines, sending its share more than 6% higher.

“This is the strongest preliminary guide the company has introduced in many years […],” Wedbush said as it raised its price target on the stock to $800.00 from $775.00.

“Highlights include average loan growth in the mid 20s percentage range, net interest income in the mid 30s percentage range (we had previously assumed 24%), core fee income in the mid 20s percentage range…” it added.

American Express (NYSE:AXP) closed about 5% higher after the credit card reported that third quarter earnings and revenue that exceeded Wall Street estimates, and guided 2022 earnings per share within the top of its guidance range.

In China, meanwhile, real estate property Evergrande looks set to avert default after reportedly meeting a key debt payment before a default deadline.

In other news, Digital World Acquisition Corp (NASDAQ:DWAC) more than doubled adding to its 357% climb Thursday ahead of a widely expected SPAC’s merger with former President Donald Trump’s planned social media platform.

S&P 500 Closes Below Record High as Tech Crackles Under Snap Pressure
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email